Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Banking and Financial Awareness Financial Markets
Which one of the following is characterised in the interest rate parity?
1
The exchange rate between the currencies of two countries equal the ratio between the price of goods in these countries.
2
The forward rate must be equal to the expected future spot rate.
3
Nominal interest rate differential must be equal to the expected inflation rate differential in the two countries.
4
The relationship between interest rates and exchange rate of two countries.